Cash in the attic

Many people think that using a homeowner loan to finance additions to their property could add value when it comes to sell it. However, research from GE Money Home Lending shows that homeowners and estate agents have different opinions about what improvements represent the best value for money.

Most homeowners mistakenly believe that would add the most value and so be the best way to invest a homeowner loan, where as in reality a well-designed loft conversion can add £22,300 to the value of a property, followed by an extension, which offers average returns of £19,271.

In fact a new bathroom or kitchen add just £8,250 and £5,155 respectively to the average value of a home.

"In many cases homeowners automatically opt for a new kitchen or bathroom," said Giacomo Gigantiello of GE Money home lending. "Whilst these are valuable additions to any home, the findings from this research show that it is also important to consider improvements that will ultimately increase a property’s living area."

Based on a survey of estate agents, GE Money further found a new conservatory can boost a property's value by as much as £11,904. After a new kitchen, installing central heating is the fifth most lucrative investment, adding £6,147 to an asking price.